Abu Dhabi Shares Lead U.A.E. Rebound From Last Week’s Losses

Abu Dhabi Shares Lead U.A.E. Rebound From Last Week’s Losses

Dec. 6 (Bloomberg) -- Abu Dhabi shares gained the most since March and Dubai’s index rose for the first time in three days on investor speculation last week’s drop was overdone and the impact of Dubai’s debt problems would be limited.

Emirates Telecom Corp., the biggest operator in the United Arab Emirates known as Etisalat, soared the most in more than eight months. Aldar Properties PJSC and Sorouh Real Estate Co., the two largest developers in Abu Dhabi, gained after they were rated “buy” in new coverage at HC Securities. Abu Dhabi’s index climbed 3.9 percent, the most since March 24, to 2,673.12. The index tumbled 12 percent last week. Dubai’s DFM General Index added 1.2 percent after retreating 13 percent last week.

Efforts by Dubai World, a state-run investment company with $59 billion of liabilities, to tackle its debts are on the right track, U.A.E. Minister of Economy Sultan bin Saeed al-Mansouri said Dec. 2, according to state-run WAM news agency. Financial and property stocks slumped last week after Dubai World requested a “standstill” agreement on all its debt payments. Nakheel PJSC, the property unit of Dubai World, has a $3.52 billion bond maturing on Dec. 14.

“We’re seeing a lot of decoupling today of affected companies from non-affected,” said Mohammed Ali Yasin, managing director of Dubai-based Shuaa Securities. “Some lower prices are tempting investors to pump liquidity back into the market.” Dubai “is still a very volatile market” and will remain so at least until the Nakheel bond comes due “because people are going to be holding hope for an announcement.”

Etisalat Jumps

Etisalat climbed 5.8 percent to 10.95 dirhams, the biggest one-day gain since March. Gulfmena Alternative Investments said last week the stock is attractive after falling to the lowest level since August.

Aldar added 1.8 percent to 4.55 dirhams, the highest level in a week. HC assigned the stock a price estimate of 6.20 dirhams. Sorouh surged 4.8 percent, its biggest gain since Nov. 2., to 2.64 dirhams. HC estimated the shares will trade at 3.20 dirhams.

Oman’s MSM30 Index lost 1.2 percent on the first day of trading after the week-long Eid El Adha holiday.

Bank Muscat SAOG retreated 5.9 percent to 0.773 rial. Oman’s biggest lender is owed 19.25 million rials ($50 million) by Dubai World.

Qatar’s DSM 20 Index added 0.3 percent, the Kuwait Stock Exchange Index gained 0.5 percent and Saudi Arabia’s Tadawul All Share Index rose 0.3 percent. Bahrain’s measure dropped 0.7 percent.

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